This study attempts to understand change and response in the female labour market in Kerala, emphasising primarily the demographic aspects. The focus is on the pattern of fertility decline which could partly explain the observed decline in work participation rates of married women. More importantly, it is hypothesised that the functioning of the female labour market may have induced a certain response affecting fertility behaviour. On the expectation that the difficulties in securing work for the woman are temporary, couples would be encouraged to bring forward the period of child-bearing and complete family size within a shorter span of time to enable participation later.